EUR/USD – Where to Next?

As expected Mario Draghi did not offer anything new at today ECB presser, but the central bank chief did drop a subtle hint that the stealth currency war remains in full force and that he clearly does not want to see the unit appreciate much further. When asked about the prospect of “helicopter money” the ECB President did not rule out the idea outright but simply demurred that the board hasn’t discussed the concept. That may be one of the reasons that the pair made a turnaround midway through his speech and ended up on the lows of the day.

Tomorrow the market will get a look flash PMI data from the region and if the numbers disappoint then euro could have further to fall. For now the 1.1200 remains key support. A break there would put in a swing top in the pair and push it towards the 1.1000 figure over the next few weeks.